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Senate salutes MFAA with Canadian agreement

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Australian Broker | 04 Dec 2012, 06:30 AM Agree 0
A Senate committee inquiry into the post-GFC banking sector says adopting a Canadian-style banking model could help inject much-needed competition into the Australian mortgage market
  • Peter White - FBAA President | 04 Dec 2012, 10:23 AM Agree 0
    I think the heading of this article needs correction. The Senate did not salute the MFAA in regards to the Canadian Model in fact if you read the report on page 91 Section 5.36 it states "...the committee is not dismissing the scheme entirely..." therefore it is not something that they are saying is a 'top of the list of interests', and they are looking to dismiss it. It also states in Section 5.35 that if this model was introduced it would transfer the risk from the private sector to taxpayers. That woudl be good - not.
    The report its self is very extensive and has many positive aspects and there are better things government can do to support our sector. The FBAA will be releasing a document shortly on this, but sorry but the canadian model is not the answer (no governement run securitisation model has completely worked anywhere in the world to date) and it is not ranking high on the radar with the Senate Inquiry.
  • sidbroker | 04 Dec 2012, 11:06 AM Agree 0
    Mr White, would you care to outline briefly what the FBAA proposes? It's obvious the MFAA is getting some traction here - at least with a Labor government. What would you propose under a Coalition government?
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